Just In Time For Tax Season: “Wealth Pioneer” Angel Rich’s Tricks To Save & Get Out Of Debt

Courtesy of Angel Rich

Save, Save, Save

“If you’ve gotta leave town tomorrow, you’re gonna need some cash. You can’t just take money out of your 401K. It’s a process. You need to have a bank account that’s sitting to the side with at least three months of emergency savings. From there, your goal is to get it to a year.”

Don’t Forget Charity

“Charity goes a long way. People don’t realize that if you take part of your savings and put it towards charitable donations throughout the year, when it comes time to pay your taxes, you can do itemized deductions and get way more money off of your taxes.”

Student Loans

“When it comes to student loans, I recommend a rehabilitation program via a consolidation program. I do not recommend paying off your student loans in one lump sum when you get your taxes back. That won’t impact your score whatsoever. The point of your credit score is a report of your credit worthiness and your ability to pay your bills on time. The amount of debt you have is 10 percent of your score, but how you pay your bills on time is 35 percent of the score. If you just pay it all off at once, it doesn’t show that you can pay your bills on time. You need to slowly pay off your student loans. Don’t pay it off all at one time.”

Get A Hobby That You Can Turn Into $$

“People need to get a hobby that will help build them wealth in the future. For instance, when I lost 100 pounds, I decided I wanted to learn how to play pool. I can make money off that. I’m now a professional pool player. I’ve been in the championships. I’m not just out here drinking and spending money in the clubs.”

This interview was edited for space and clarity.